Retail Stores Will Completely Die, Says Tech Investor Marc Andreessenhttp://www.businessinsider.com/retail-stores-will-die-says-marc-andreessen-2013-1/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Tue, 31 Mar 2015 17:00:08 -0400Alyson Shontellhttp://www.businessinsider.com/c/512ba0f9ecad047a5800000eJay EyMon, 25 Feb 2013 12:35:53 -0500http://www.businessinsider.com/c/512ba0f9ecad047a5800000e
Two words: sock puppet. (Petsmart.com)http://www.businessinsider.com/c/510fdf6b69bedd9d3a000005John ThomsonMon, 04 Feb 2013 11:18:51 -0500http://www.businessinsider.com/c/510fdf6b69bedd9d3a000005
Canada just saw the closing of 15 Best Buy stores. Andreessen's observations will be welcome, if the demise of physical retail eliminates big boxes. They are soul-less, they lack customer service, they rarely retain front line staff and the whole shopping experience is driven by price. That said, visiting a great cheese shop, or clothing store where the owner knows your name and your taste, walking down a main street and popping in to independent stores is a great experience and I would be sad to see that disappear. The social experience of face to face human interaction still has value.http://www.businessinsider.com/c/510fd9b369bedda72800000aTerrie Marcoe (@BYOSmallBiz)Mon, 04 Feb 2013 10:54:27 -0500http://www.businessinsider.com/c/510fd9b369bedda72800000a
The fix for the last minute items is the eGift Card. At least for gift items. Even grocery stores have successfully done the etransition, in larger metro areas. There is no reason to see why they can't make a model for less populated places(order via net and pick up at a distribution center which is also a warehouse with a nice 'customer interaction" lobby. Of course.... they would likely have some impulse purchase items stocked in that area for people to add to their purchase on the spot. So maybe retail is just changing after all!http://www.businessinsider.com/c/510da16decad048b35000001Ken JeromeSat, 02 Feb 2013 18:29:49 -0500http://www.businessinsider.com/c/510da16decad048b35000001
The future won’t be the death of brick and mortar stores or the dominance of eCommerce but rather a collaboration of the two resulting in a new experience. The in-store experience will not go away it will only get better and likely far different to what it is today.http://www.businessinsider.com/c/510c6f846bb3f7015e00001bMichael P. RidleyFri, 01 Feb 2013 20:44:36 -0500http://www.businessinsider.com/c/510c6f846bb3f7015e00001b
Marc: I value your contributions to society and technology but have you walked by a GAP, APPLE, or Williams and Sonoma any time lately? I think technology will do just the opposite and reinvent retail and MY TEAM ARE GOING TO PROOVE IT! LOOK OUT for SHOPPRIVATO.com. BTW I would love the chance to convince you why your opinion needs to be modified. E-commerce is so boring and non-entertaining it lacks the very ego driven processes that made retail great. Those retailers who embrace technology and help fulfill our entertainment and tactile and sensory requirements will be poised for domination.http://www.businessinsider.com/c/510c5f1eecad04535b000001Jerry StuckleFri, 01 Feb 2013 19:34:38 -0500http://www.businessinsider.com/c/510c5f1eecad04535b000001
B&M disappear? Not a chance. First of all, look at his examples. Blockbuster was about renting movies, not selling them. You get to keep them for 2-3 days and then need to return them. There is no "hard product" there. It was ripe for takeover by Netflix.
As for travel agents - they were there because, before the WWW, they had the only computerized inroad to the travel business. One could spend two days calling airlines, hotels and car rental places to try to find the best deal, schedule, etc. Or one could call a travel agent and for free (the airlines, etc. paid the bill), one could get it all in a half hour. But now with the various travel sites, it becomes easy to do it. And again, no "hard product".
Circuit City is different. But they failed because of bad management decisions. Sure, the internet probably hastened their demise, but it was coming.
There are a lot of things I will never buy on the internet. Clothing such as suits, dresses, shoes, etc. are a good example - there is just too much variance in sizing, as mentioned above. Home Depot is where I go for home improvement (although occasionally I can't find it there and need to order on the internet). Forget groceries - there has been a place for the grocery store for hundreds of years, and will be for hundreds of years more. Even pet stores are going to stay around. I could order cat food from Petco over the internet, but the delivery charge makes it much more expensive than I can get at the local store.
The point is - the internet is replacing B&M's for "Soft products". B&M stores will still supply much of the "hard products". In many lines, the B&M stores will have to reinvent themselves - the old ways will no work. Those who do will survive. Those who don't will go the way of Circuit City.http://www.businessinsider.com/c/510c5725eab8eac71900003cBen T. Smith, IVFri, 01 Feb 2013 19:00:37 -0500http://www.businessinsider.com/c/510c5725eab8eac71900003c
Let’s put things in perspective here….
What this means is that a 4.5 trillion industry that grew by 28% in the past decade will die in the next 10 years to be replaced by ecommerce – and the current share of which is not even 10%?
For some weekend reading, checkout "Retail is not dying… just transforming" at <a href="http://btsiv.com" target="_blank" rel="nofollow" >http://btsiv.com</a>http://www.businessinsider.com/c/510bfc4eecad048b22000001jeffrobinsonFri, 01 Feb 2013 12:33:02 -0500http://www.businessinsider.com/c/510bfc4eecad048b22000001
So the easiest pure play for Marc would be to short commercial real estate...I don't agree that retail will disappear - The merger of online and offline will create new exciting models.http://www.businessinsider.com/c/510b9358ecad044155000022without James Clark there would be no Andressen -- he was not starting a company on his own -- he was taking a jobFri, 01 Feb 2013 05:05:12 -0500http://www.businessinsider.com/c/510b9358ecad044155000022
the guy is all hype
did he ever have a successful product?http://www.businessinsider.com/c/510b03c0ecad042b4f000001Paul BenjouThu, 31 Jan 2013 18:52:32 -0500http://www.businessinsider.com/c/510b03c0ecad042b4f000001
This kind of grandstanding only hurts the evolution of e-commerce. Retail stores will never go away. Diminished in need and style, yes, but never go the way of the Dodo. Andreessen's over-hype can drive many in the wrong direction, leading to failure. Let's get a grip.http://www.businessinsider.com/c/510aea4669bedd200b00000bPaul ConnThu, 31 Jan 2013 17:03:50 -0500http://www.businessinsider.com/c/510aea4669bedd200b00000b
I can say with 100% certainty this is wrong. Retailers are evolving, just look at Macy's. They are thriving by using their advantage of having physical stores where you can pick up an item or have it shipped from the closest store. They said the same thing in the 90s and it never came to fruition. You can't use the example of businesses that are killed because technology REPLACES their product like books, movies and music. You cannot replace a physical shirt with a digital one...well at least not yet ;)http://www.businessinsider.com/c/510ae94e6bb3f7500700000eartysxThu, 31 Jan 2013 16:59:42 -0500http://www.businessinsider.com/c/510ae94e6bb3f7500700000e
It's not a problem of retail stores as a concept. It's about what they sell.http://www.businessinsider.com/c/510ae0a0ecad045a0b000008Robert ZohnThu, 31 Jan 2013 16:22:40 -0500http://www.businessinsider.com/c/510ae0a0ecad045a0b000008
I'd like to add some valuable additional information so your readers get a complete understanding of the market shift. Although it's true that online buying is competing with big box chain retailers, it's actually helping differentiate the advantages of speciality retailers who add value by helping clients make the best choice for their specific applications and uses. Shopping carts can't compete with the skill and knowledge of a well trained specialist for technical advice.
Even more importantly speciality retailers offer enhanced services like custom installation and integration to existing owned products. Things no online store can do.
So in fact, the online websites have helped speciality stores grow by marketing products, which creates demand for products and services that are best suited for speciality retailers.
I can tell you first hand that our custom audio/video/home control business has been growing very rapidly and our growth is partially fueled by Internet sites promoting Smart House Integration, Whole House Distributed Audio Systems and TVs.
Hope this helps make a complete picture of how Internet sellers help support local B&M retailers.
Respectfully,
Robert Zohn
Value Electronics
Scarsdale, NYhttp://www.businessinsider.com/c/510ad553eab8eab742000007So will Obese Bald Obnoxious IdiotsThu, 31 Jan 2013 15:34:27 -0500http://www.businessinsider.com/c/510ad553eab8eab742000007
This big mouth thinks he is such a great gift to humankind, he isn't. He is a greedy hog.http://www.businessinsider.com/c/510ad2af69bedd664b000035flyerdaytonThu, 31 Jan 2013 15:23:11 -0500http://www.businessinsider.com/c/510ad2af69bedd664b000035
I agree with you Len. Walmart, Target, Kroger (grocery chain in Midwest) aren't going anywhere. Sears, Kmart, Best Buy, Radio Shack, JCP,...those are the kinds of brick and mortar chains that I think will not be here by the time I retire in 15 years, and yes again I agree poor management decisions will be a big part of the cause. I buy almost exclusively online except for groceries and what I can get at Walmart. It's just easier to do it on Amazon. World's Turning and ecommerce will only get better, at the expense of the traditional retailers.http://www.businessinsider.com/c/510ad20aeab8ea0d3b000003Jon HillerThu, 31 Jan 2013 15:20:26 -0500http://www.businessinsider.com/c/510ad20aeab8ea0d3b000003
Another thing this does not take into account: any type of retail that involves after-the-sale service. This doesn't really apply to electronics, but say, school band instruments, where they have to be adjusted and have the occasional pad replaced. That type of work is specialized and not something a parent can do, and neither can the service desk at Walmart/Best Buy/Target etc. Certain segments of retail will not ever go away for that reason.http://www.businessinsider.com/c/510ac3916bb3f77e41000002lenfeldmanThu, 31 Jan 2013 14:18:41 -0500http://www.businessinsider.com/c/510ac3916bb3f77e41000002
There are certainly some retail segments that are very vulnerable to eCommerce (anything to do with media, consumer electronics, and product areas where it's very hard for brick & mortar retailers to keep both a wide and deep inventory.) There are also retailers that are "circling the drain", not because of eCommerce, but rather, bad management (Sears Holdings is an excellent example.) However, there are plenty of segments where consumers expect immediate availability (groceries, liquor and pharmacies are three examples). There, eCommerce will encroach on but not totally replace brick & mortar retailers.
I know Marc, and I doubt that he's shopped at Walmart in the last 15 years. If you don't pay attention to companies like Walmart and Target, it's hard to understand why they're so important to consumers and why they'll be virtually almost impossible to displace completely with eCommerce.http://www.businessinsider.com/c/510ab82eecad04163f000002clickbotThu, 31 Jan 2013 13:30:06 -0500http://www.businessinsider.com/c/510ab82eecad04163f000002
Your comment should be promoted.http://www.businessinsider.com/c/510ab590ecad04d738000008mvigodThu, 31 Jan 2013 13:18:56 -0500http://www.businessinsider.com/c/510ab590ecad04d738000008
Good luck with that predictionhttp://www.businessinsider.com/c/510ab509ecad04d938000009Mike SmithThu, 31 Jan 2013 13:16:41 -0500http://www.businessinsider.com/c/510ab509ecad04d938000009
What is the market for "last minute items" that ecommerce doesn't serve and traditional retail does serve? My point is that the market isn't that big. You can wait for order today, deliver tomorrow and ecommerce will serve all those needs in the future for all product categories.http://www.businessinsider.com/c/510ab184ecad040930000006SumocatThu, 31 Jan 2013 13:01:40 -0500http://www.businessinsider.com/c/510ab184ecad040930000006
Meanwhile, Apple is slaying it in brick & mortar retail, and Google is working on transitioning their e-commerce model to the real world via Google Now, Google Glass and robot cars that take you to a real site the way Google takes you to a website. That said, I agree with his core argument, but there will be at least a couple rounds of evolution before technology is capable of driving retail to extinction.http://www.businessinsider.com/c/510ab0fcecad047d30000017greenchiefThu, 31 Jan 2013 12:59:24 -0500http://www.businessinsider.com/c/510ab0fcecad047d30000017
Marc; I thought we would have replaced brick and mortar by now. But it seem to me the basic human instinct on hunter gatherer is alive and well with the American shopper. How would software overcome the need for social gatherings? I wonder what a futuristic retail shopping center would look like?
Plus, would women really let us get away with no shopping malls? (Sorry ladies, but you know it true-right)?
Would love to hear your thoughts on the matter.http://www.businessinsider.com/c/510aafa4eab8eacc68000010BHThu, 31 Jan 2013 12:53:40 -0500http://www.businessinsider.com/c/510aafa4eab8eacc68000010
Webvanhttp://www.businessinsider.com/c/510aabe5eab8eab060000017harry goswameeeThu, 31 Jan 2013 12:37:41 -0500http://www.businessinsider.com/c/510aabe5eab8eab060000017
grocery stores are here to stay..no matter what happens...http://www.businessinsider.com/c/510aab17ecad04ef2600000brichvegasThu, 31 Jan 2013 12:34:15 -0500http://www.businessinsider.com/c/510aab17ecad04ef2600000b
I would never buy a suit or high end dress shoes without trying them on first. there will always be retail. it may transition to high end or specialty but there is no way Gucci or Vuitton would close retail.http://www.businessinsider.com/c/510aa66aeab8ea6656000001DWThu, 31 Jan 2013 12:14:18 -0500http://www.businessinsider.com/c/510aa66aeab8ea6656000001
He's not always right and certainly blockbuster was a easy target to shut down. Is there "pleasure" in going out to rent a movie? That's not a shopping experience. The problem for most retail, product on shelf types, is the model needs to shift. Retailers will no longer order stock and get a bill. Manufacturer's will send stock and wait to get paid.....aka Walmart. Your stuff doesn't sell, they send it back to you. Ever see bins of stuff marked 50% off at Walmart? RARELY........they send you your shit back. Retail will find a way to survive....its the mfr's where the weak get weeded out dude.http://www.businessinsider.com/c/510aa5fdeab8ea4253000011James MackenzieThu, 31 Jan 2013 12:12:29 -0500http://www.businessinsider.com/c/510aa5fdeab8ea4253000011
Marc was singing the end of bricks and mortar then, he is drinking the same kool-aid today.http://www.businessinsider.com/c/510aa5dceab8eae455000002JimboThu, 31 Jan 2013 12:11:56 -0500http://www.businessinsider.com/c/510aa5dceab8eae455000002
No more shopping in stores?? This guy obviously doesn't know too many women!http://www.businessinsider.com/c/510aa58d6bb3f7bb05000015James MackenzieThu, 31 Jan 2013 12:10:37 -0500http://www.businessinsider.com/c/510aa58d6bb3f7bb05000015
Sure it will .... next time I need to build a shed, I will order 2x4s, roofing, osb etc online. shipping will be free!! Who needs Home depot!!!
Again, he created Netscape, made a mint off his vaporware and, well, that's it.
Some verticals will disappear, others will be firmly on the ground, it all depends on a variety of factors.
This kind of of off-the-cuff pontificating drives me insane. please, no more!!!http://www.businessinsider.com/c/510aa50e6bb3f7f507000008Matt LThu, 31 Jan 2013 12:08:30 -0500http://www.businessinsider.com/c/510aa50e6bb3f7f507000008
Ok Marc was a genius programmer with a great vision that led us to the internet age and has a great track record as a tech VC, but what does he truly know about retail?
There are definitely retail categories that are endangered by e-commerce, there are still others that will go hand in hand with brick and mortar, and others that the online experience is a failure for.
Products that are commodities and shopped on price are going to be online only, others that need comparison are going to be hybrid showrooms and online delivery, but things that are "sized" or are spontaneous purchases are going to benefit from the retail experience.
Didn't we hear that e-commerce was going to wipe out brick and mortar somewhere around the .com bubble burst? I'm pretty sure everyone in e-commerce said pets.com and e-toys.com were going to kill their respective categories.http://www.businessinsider.com/c/510aa44aecad04ac1700001bWhereisNingThu, 31 Jan 2013 12:05:14 -0500http://www.businessinsider.com/c/510aa44aecad04ac1700001b
He is delusional, good time to bet against whatever he pumpshttp://www.businessinsider.com/c/510aa1d76bb3f7fc7f000018Encino ManThu, 31 Jan 2013 11:54:47 -0500http://www.businessinsider.com/c/510aa1d76bb3f7fc7f000018
But then where will we showroom?
EM